Business, Stephen M. Ross School of - Working Papers Serieshttp://hdl.handle.net/2027.42/35324
Thu, 26 Feb 2015 06:16:55 GMT2015-02-26T06:16:55ZBusiness, Stephen M. Ross School of - Working Papers Serieshttp://deepblue.lib.umich.edu:80/bitstream/id/187574/RSB-HP-Logo.gifhttp://hdl.handle.net/2027.42/35324
Greenwash vs. Brownwash: Exaggeration and Undue Modesty in Corporate Sustainability Disclosurehttp://hdl.handle.net/2027.42/110678
Greenwash vs. Brownwash: Exaggeration and Undue Modesty in Corporate Sustainability Disclosure
Lyon, Thomas P.
Corporate greenwash has accelerated in recent years, bringing in its wake growing skepticism about corporate green claims. Although a theory of the drivers and deterrents of greenwash has begun to emerge, it is static in nature and does not incorporate the full range of ways in which firms can misrepresent their environmental performance. Our contribution is three-fold. First, we extend the theory of organizational information disclosure to incorporate the possibility of undue modesty about a firm’s environmental, social and governance practices. Second, we hypothesize about the drivers of exaggeration and undue modesty based on which of a firm’s stakeholders are salient at a given point in time; to do so we place the firm within a dynamic context that has largely been missing in the prior literature. Third, we test our hypotheses using a dataset that allows us to directly compare corporate green claims against actual performance. Results reveal that corporate output growth, deregulation, and low profits under deregulation significantly affect the choice between greenwash and brownwash. The effects of growth and profits are mitigated by external scrutiny.
Sat, 01 Nov 2014 00:00:00 GMThttp://hdl.handle.net/2027.42/1106782014-11-01T00:00:00ZInstitutional Theory and the Natural Environment: Research in (and on) the Anthropocenehttp://hdl.handle.net/2027.42/110119
Institutional Theory and the Natural Environment: Research in (and on) the Anthropocene
Hoffman, Andrew J.
This review article summarizes the main tenets of institutional theory as they apply to the topic of the Anthropocene in the domain of organization and the natural environment (O&NE). But our review is distinctive for two reasons: first, it is focused on providing avenues researching the Anthropocene Era. Second, while based on the trajectory of current, accumulated theory and research, our review is forward-looking in its orientation and thus aimed at guiding future work to explore the emergence of a new social reality in Anthropocene Society. We begin by summarizing the scientific research on the Anthropocene Era, then move to its implications for grand and mid-range institutional theory principles, and, of institutional principles for the study of it. We end with a call to reenergize and re-radicalize the O&NE field to properly address the magnitude and scope of this shift to the Anthropocene.
Thu, 01 Jan 2015 00:00:00 GMThttp://hdl.handle.net/2027.42/1101192015-01-01T00:00:00ZFinancing Payoutshttp://hdl.handle.net/2027.42/109754
Financing Payouts
Schmalz, Martin C.
Despite the obvious interest in payout policy, no paper to date has systematically analyzed how payouts are funded, perhaps because the answer might have appeared just too obvious: payouts are funded with free cash flow — at least over long enough time periods. In stark contrast to this commonly held view, we find that firms rely on the capital markets to finance a third of aggregate payouts, mainly with debt but also with equity. Such “financed payouts” are widespread, persistent, prevalent both among dividend-paying and repurchasing firms, and large in magnitude. Standard interpretations of agency or signaling theories are unable to explain this behavior. We argue, however, that our findings are consistent with a reinterpretation of ideas related to agency conflicts and a holistic view of corporate financial strategy that examines payout and capital structure decisions jointly.
Mon, 01 Dec 2014 00:00:00 GMThttp://hdl.handle.net/2027.42/1097542014-12-01T00:00:00ZGuilt by Association: The Cost of Corporate Social Responsibility and Activist Pressure after a Catastrophehttp://hdl.handle.net/2027.42/109753
Guilt by Association: The Cost of Corporate Social Responsibility and Activist Pressure after a Catastrophe
Kayser, Susan A.
Catastrophes increase pressure upon all firms within the industry. However, certain firms risk larger punishments after the event. I posit that firms with substantive corporate social responsibility (CSR) initiatives will lose more firm-value after a catastrophe because they will be expected to engage in costly self-regulation to lessen pressure on the industry. I also argue that due to strategic activist targeting, firms subject to greater past activism will lose more firm-value. I develop my hypotheses by combining theories on the reputation commons problem, the value of CSR, and social movements. Using an event-study, I examine the apparel industry after the collapse of Rana Plaza. Results indicate that firms with substantive CSR initiatives and firms subject to greater activism lost more firm-value after the collapse.
Mon, 01 Dec 2014 00:00:00 GMThttp://hdl.handle.net/2027.42/1097532014-12-01T00:00:00Z